Abstract
<p>The objective of this review is to analyze the contribution of human resource management (HRM) in creating good governance in the organizations. A theoretical framework concerning the characteristics of good governance and the contribution of human resource management based on those characteristics were developed. The relationship between human resource management and creating good governance in the organizations, which is based on social, ethical, democratic, and economic basis, involves some important aspects concerning people management aspects such as participation, consensus orientation, accountability, transparency, responsiveness, effectiveness and efficiency, equity and inclusiveness, and following the laws and regulations. The integration of characteristics of good governance with possible approaches and practices of HRM leads to developing a model which underpins the contribution of HRM to create and practice good governance in the organizations. Based on this model, propositions and recommendations for future research on this theme are presented.</p>
Highlights
Over time, the field of human resource management (HRM) and its concepts have changed from originally having their focus on welfare and administration to an emphasis on employee motivation and job satisfaction (Shen, 2011)
Encouraging the decentralization of decision making and broader worker participation and empowerment through HRM practices will improve the participatory elements of good governance in the organizations. Based on these literature evidences and supports, this review proposes following proposition: Proposition 1: The extent to which HRM practices are perceived to be participatory is positively related to participatory element of good governance in the organizations
In making decisions or implementing policies and practices, it has to achieve consensus orientation dimension of good governance by considering various stakeholders, otherwise it is very difficult to practice human resources (HR) policies in the organizations. Based on these literature evidences and supports, this review proposes following proposition: Proposition 2: The extent to which HRM practices are perceived to be consensus orientation is positively related to consensus orientation element of good governance in the organizations
Summary
The field of HRM and its concepts have changed from originally having their focus on welfare and administration to an emphasis on employee motivation and job satisfaction (Shen, 2011). According to Jabbour & Santos (2008), HRM is playing a central role in organizational sustainability by contributing economic, social and environmental performance of the organizations. If HRM of an organization can play a central role in organizational sustainability, it is possible to search and review on how HRM can contribute to create good governance in the organizations. Exploring the contribution of HRM to create good governance in the organizations is a significant area of organizational research that will help organizations to become as sustainable organizations. It will further enhance the scope and depth of the field of human resource management
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